2009 Cap

[Keith]

Originally Posted by Keith

I'll probably write up something here later about key points,

A couple things, mostly about Mario...
- It's official. Mario Williams is a badass. His performance to date has apparently allowed his contract to trigger a couple key functions, namely his ability to void the final two years (2010 and 2011). Fear not, per the original agreement, the Texans exercised the buyback option, but only at supercharged base salaries of $9.4 million and $13.6 million, respectively.

The buyback bonus is $8.5 million, and per my notes from a year ago, it was supposed to have been payable within two equal installments, the first on 3/15/2010 and the second one year later. Since it appears as though the option has already been bought back, I'm a little unclear as to whether this affects the 2009 cap right now. I don't think it does, which would be good if 2010 remains an uncapped year. Mario's cap figure will be ginormous in 2010 and 2011 if there is a salary cap.

- Chris Brown is still on the roster. I know, I'm surprised, too. He finished the 2008 season on IR, and apparently there was no injury settlement from what I can tell. Maybe he'll take care of the bug problem in the Reliant Stadium basement until the payroll glitch gets fixed.

Even though 2010 is looking like an uncapped year, I still intend to publish a 2010 cap page on the site when I get some time to put one together, hopefully in the next day or two. In spite of Williams' huge cap figure, the available cap space might have grown another $10 million or so. Given the # of teams with literally dozens of millions of cap room this year, I think it is a little easier to see why some owners think the players' piece of the pie is getting harder to stomach. Specific to the Texans... they have very little reason to "make it happen" when it comes to re-signing the UFAs and RFAs they want around (Dunta, Owen) and other key players (DeMeco, Pitts, Walter, K. Brown).

[papabear]

Keith- Wouldn't it make sense to sign Mario to a long term extension...maybe after this year, to spread out the cap hit?

[nero THE zero]

Originally Posted by papabear

Keith- Wouldn't it make sense to sign Mario to a long term extension...maybe after this year, to spread out the cap hit?

You'd have to think he'd have Jared Allen/(new)Julius Peppers money coming to him. Regardless, I can't imagine an argument against signing him long term.

You gotta pay to have one of the best DE in the league.

[Keith]

Originally Posted by papabear

Keith- Wouldn't it make sense to sign Mario to a long term extension...maybe after this year, to spread out the cap hit?

Well, cap hit may be irrelevant after this year. And an extension would mean more up front bonus money (probably in excess of the base salary). I think to avoid some uncapped year rules in '09/'10, they would probably wait until early 2011 or so to do this.

[cland]

The uncapped year is still a bit of a mystery to me. But to those who know more than I do, what prevents Mr. Mcnair setting this team up for the next 5-7 years in 2010?

My understanding is that 'signing bonuses' are amortized over the length of the contract. However 'roster bonuses' come directly out of the year in which they are given. Typically signing bonuses are used more often to spread the cap hit out over the ~5 years of the contract, however in the uncapped 2010 why not get all the cap hit out of the way?

So imagine next year:

Mario Williams - $50 million guaranteed + minimum salary over 7-year contract.
Demeco Ryans - $30 million guaranteed + minimum salary over 7-year contract.
Owen Daniels - $25 million guaranteed + minimum salary over 7-year contract.
Dunta, Schaub, Johnson, etc.

Don't worry about the numbers they can move up or down, but if that guaranteed payment is a roster bonus (and the value of the contract is what you would pay for those players down the road anyways) haven't you freed yourself of any meaningful cap restrictions that may come back in later years.

It's takes an early investment, but Houston is one of the most valuable franchises in the league. Assuming the cap comes back in 2011 in it's current form, the above players now cost you nothing.

Anyways, maybe there are some rules to prevent this type of activity. But it's interesting regardless.

[dalemurphy]

Keith, the number shrunk. after the two big cuts, I think the number was going to be about $37 million, you've got it at about $32 million right now- before counting Dunta. What happened? what was adjusted?

[Keith]

Originally Posted by dalemurphy

Keith, the number shrunk. after the two big cuts, I think the number was going to be about $37 million, you've got it at about $32 million right now- before counting Dunta. What happened? what was adjusted?

The # on the ItB.com cap page has not changed since Green and Greenwood were cut, so I'm not sure where the $37 million figure is coming from.

After the Greenies were cut, I heard a lot of fans trying to do their own cap calculations in their head... taking the "savings" reported in the media and adding it to a figure seen here or elsewhere. I discussed the misleading differences in the other Green-cutting thread.

I think the biggest gray area I have right now on the cap page is the per game bonuses for Green last year... I need to figure out how those were accounted for in the cap. I think I might get my answer in another week or two when the cap adjustments come out, but if anyone out there has info, let me know.

[dalemurphy]

Originally Posted by Keith

The # on the ItB.com cap page has not changed since Green and Greenwood were cut, so I'm not sure where the $37 million figure is coming from.

After the Greenies were cut, I heard a lot of fans trying to do their own cap calculations in their head... taking the "savings" reported in the media and adding it to a figure seen here or elsewhere. I discussed the misleading differences in the other Green-cutting thread.

I think the biggest gray area I have right now on the cap page is the per game bonuses for Green last year... I need to figure out how those were accounted for in the cap. I think I might get my answer in another week or two when the cap adjustments come out, but if anyone out there has info, let me know.

Thanks for your time, Keith.

Before the cuts, we were $29.5 million under the cap. Every calculation I've seen adds at least $7 million in savings for the combination on Green and Greenwood. That's where I'm lost.

[Keith]

Originally Posted by cland

The uncapped year is still a bit of a mystery to me. But to those who know more than I do, what prevents Mr. Mcnair setting this team up for the next 5-7 years in 2010?

Sorry I missed this... one thing that will restrict teams with the uncapped (and still CBA-governed) season upcoming in 2010 is the 30 percent rule.

What it does: Limits pushing future compensation into uncapped years.


How it works: A player's base salary plus his LTBE incentives from the last capped year multiplied by 30 percent equals the limitation value (uncapped years cannot increase higher than this value).

http://www.atlantafalcons.com/People...isc_Rules.aspx